This is a question that recently came up in our troupe; a new player is about to join us, with an Outlaw Leader companion.
The Outlaw Leader Social Status Flaw makes the character into the leader of a small group of outlaws (three to six -- incidentally, does this number include the leader?). Now, the "natural" way to create these followers is to have them as grogs. However, what would their Social Status be? Outlaw seems the naturaral Flaw for them -- but it's a Major Flaw, and thus unavailable to grogs.
Since that IS the correct Flaw for them, RAW is wrong and you ignore that part for them. Or you count it as a Minor for terms of accounting/creating the characters.
And i would say that the group does not involve the leader, otherwise it feels more like "me and two other guys" rather than "me the leader of this little group".
Well, our thinking was that the story potential of the local lords being actively after you (moreso than they would be after a lone bandit), plus needing to keep a half dozen bandits in line, feed and sheltered pretty much balanced it out.
Interestingly, the original arguement was made by a player who wanted to make an outlaw grog.